Europe in Review 2014

EUobserver, in its second annual review, looks back at the main events of 2014: Russia's annexation of Ukraine; the selection of the EU's new top cadre; separatism in Europe and more.

defence. If the US or

defence. If the US or Germany are unwilling to risk escalation by confronting Russia, it will be the end of the Western alliance. NATIONAL FRONT LOANS There is already political subversion. Kremlin-linked firms have channelled millions in loans to the National Front, a farright anti-EU party in France, to help it contest 2017 elections. Russia is also co-operating with anti-EU parties in Austria, Belgium, Bulgaria, Germany, Greece, Italy, Hungary, and Latvia. There is economic coercion: Putin has used the lure of gas pipeline investments and the threat of gas cut-offs to split EU leaders. EU arms suppliers, oil companies, engineering firms, and banks lobby on his behalf to protect their Russia contracts. There is also propaganda: Russian media, such as RT or Sputnik, broadcasting from EU capitals in several languages, tell the story of Ukrainian fascists, Western coups, and Europe’s homosexual aberrations, while pro-Russia trolls police coverage of the crisis inEuropean online publications. MERKEL ON THE PHONE For their part, Nato and EU leaders reacted step by step. Nato states rejected Ukraine’s appeal for modern weapons and eastern European allies’ call for new military bases. But they agreed to fund Ukrainian military logistics, cyberwarfare, and command and control capabilities.They increased air-policing and drills in the Baltic region and will launch a “spearhead” force by early 2015 to deter Crimeatype scenarios in the Baltic states. The EU is injecting billions of euros and sending security instructors to help Ukraine’s post-revolutionary state deliver reforms. It tried a variety of diplomatic initiatives: trilateral trade talks and gas talks; “Normandy” ceasefire negotiations; “Minsk” and “Geneva” negotiations; informal summits; phone calls - Germany’s Angela Merkel spoke to Putin more than 40 times. It also crossed the rubicon by imposing sanctions - at first blacklists, then “targeted” economic measures against Russian banks and energy firms. PIPELINES AND SANCTIONS Putin’s preparations began before the Ukraine crisis. He redoubled military spending in 2012. He acquired a major economic and political asset in the EU when Germany in 2005 agreed to build the Nord Stream gas pipeline. He started a crackdown on pro-European liberals and their ideas in Russia even earlier. The ideology of the Russkiy Mir also predates the new crisis. Henryk Wlaszczyk, a Polish aid worker who visited Gori University in Georgia shortly after the Russian invasion in 2008, found an EU flag which had been torn down, bayonetted, and shot by Russian soldiers. “This symbol of the EU countries and of Georgian aspirations was an object of direct physical hatred,” he said at the time. “EU countries should realise that this is being seen as a conflict between two empires”. Parts of the EU establishment - France, Italy, Hungary, and the Socialist party in Germany among others - are willing to cede ground in order to get back to pre-history, or, business as usual. Russia-controlled Ukrainian separatists. Photo: Jeroen Akkermans RTL HOLY LAND But as the year ends, it’s becoming clear the conflict will last a long time. Russia needs a land bridge to Crimea if its new province is to be economically sustainable. But Merkel said in November that if Putin attacks the Ukrainian city of Mariupol - the Crimea bridge - EU sanctions are “unavoidable”. The EU measures and low oil prices cost Russia 0 billion in lost revenue in2014 (6% of the state budget). Capital flight cost another 0 billion and the rouble has plunged to all-time lows. But Putin, in his state-of-the-nation speech on 4 December, didn’t blink. He told Russian people to expect more economic hardship and described Crimea as Russia’s “holy land”. Whether he intended to stop at Mariupol, or Kiev, or to go to Tallinn when the 16 armoured vehicles left their base in Crimea on 21 February is not known. But if political and market forces cause a Russian economic crisis, it might make him even more unpredictable. • Dutch grieve for victims of a passenger plan shot down by stray rocket over east Ukraine. Photo: Roman Boed Nato image shows Russian troops on the move in Ukraine. Photo: nato.int War damage in Dontesk. Photo: Reporteros Tercerainformacio Pro-Russia protests spring up - here in Berlin. Photo: James Rea 06 ––––– Europein review 2014Europein review 2014 ––––– 07

EUobserver's 2017 Regions & Cities magazine takes a closer look at EU agencies and the benefits for cities and regions to host them. The UK leaving the EU has prompted a scramble for the European Medicines Agency and the European Banking Authority among most of the remaining member states. But what makes a city competitive? Which cities stand a good chance to become the new hosts? And what do EU agencies bring to the local economy?

The 2016 edition of EUobserver's Regions & Cities magazine looks at the cities of the future in Europe. While the EU is grappling with challenging problems - Brexit, migration, the economy, terrorism, to name a few - many European cities are reinventing themselves and tackling these problems in their own way.

EUobserver's 2017 Regions & Cities magazine takes a closer look at EU agencies and the benefits for cities and regions to host them. The UK leaving the EU has prompted a scramble for the European Medicines Agency and the European Banking Authority among most of the remaining member states. But what makes a city competitive? Which cities stand a good chance to become the new hosts? And what do EU agencies bring to the local economy?

The 2016 edition of EUobserver's Regions & Cities magazine looks at the cities of the future in Europe. While the EU is grappling with challenging problems - Brexit, migration, the economy, terrorism, to name a few - many European cities are reinventing themselves and tackling these problems in their own way.